Protecting Your Assets with Bankruptcy Exemptions

The purpose of bankruptcy laws is to help individuals achieve a second chance and a fresh start when their financial burdens have become too great. To that end, measures have been put in place to protect the assets of those who file for bankruptcy so that they are not left with nothing once the bankruptcy process is complete. Specific bankruptcy exemptions protect certain categories of assets from liquidation and also allow most people to keep all of their personal belongings and property . Federal law governs bankruptcy proceedings but in California, your personal belongings are protected, and in fact, the majority of people filing for chapter 7 bankruptcy will lose nothing - except their debt.

Property that can be deemed exempt is outlined in the bankruptcy schedules filed with the bankruptcy court in the initial phase of your bankruptcy case. Your creditors have a right to object to these exemptions at the First Meeting of Creditors but if there are no objections, the property will thereafter be excluded from your bankruptcy proceedings. It is imperative you have a bankruptcy attorney helping you navigate the complexities of your bankruptcy; otherwise, you risk errors or omissions which can cost you immensely.

What Bankruptcy Exemptions Determine

Exemptions determine what you get to keep, after you file for bankruptcy. In Chapter 7 bankruptcies, exemptions decide whether you get to keep your personal belongings, car, pension or property. Whatever is not exempt can be sold to repay your creditors. Each state has its own set of exemptions that apply to bankruptcy. In addition to Texas exemptions, federal supplemental exemptions can be used. But if you choose to use Texas exemptions, only a few federal exemptions apply.

How do bankruptcy exemptions work? If your state has a vehicle exemption of $5,000 and your car is only worth $3,000, than you will be able to keep your car. Bankruptcy exemptions can be complex, which is why it is imperative to get the assistance of a bankruptcy attorney. He/she can help you think through the assets you own and which bankruptcy exemption system would be the best for you to use.

In a Chapter 13 bankruptcy, you can determine how much you will have to pay your creditors. If most of your property is exempt, you can probably afford a Chapter 13 plan. If much of your property isn't exempt, however you may not be eligible for Chapter 13 bankruptcy. Our firm knows that you have multiple questions regarding federal and state exemptions, which exemption system you should use, how exemptions can help you keep your property and which pieces of your property are exempt- and we can help you answer these questions!

You deserve to keep as much of your assets as you can, and we can help you think through which system would be the best for you and your family's livelihood. Bankruptcy comes with a lot of pros and cons, so each method should be considered fully. The last thing you want to do is rush a decision that could negatively affect your future for years. With the right counsel, you will be back on your feet in no time and will be able to begin your life afresh.

Finding the Qualified Legal Assistance You Deserve

An attorney from Price Law Group can review your personal circumstances and explain how the different types of bankruptcy and exemption laws would apply in your case. With 20 years in practice, the legal team at the firm is extremely well-versed in all aspects of bankruptcy and can help you make informed decisions regarding this important matter. The firm will also represent you at the First Meeting of Creditors and other court appearances, and guide you through the entire process, from preparation and filing to completion. They offer a free consultation to help you gain an understanding of the options available to you and how they can help. For help understanding how the bankruptcy exemptions apply to you, contact our firm today!

The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.